Conflict of Interest

[crawale]

One of the Directors has a spouse employed by the management company that has been voted for termination. Can the Directors be forced to recuse herself from voting on issues that have a direct monetary impact on her? If the management company leave then the spouse may no longer be employed - financial impact.

[Edgar Guest]

Can the Directors be forced to recuse herself from voting on issues that have a direct monetary impact on her?

 

No. Though this may be an instance when she should (voluntarily) not exercise her right to vote. See p.407.

[Guest crawale]

Thank you for your reply. We are in Florida and the Statute 720 has this provision:-

720 303 .(12) COMPENSATION PROHIBITED.—A director, officer, or committee member of

the association may not directly receive any salary or compensation from the

association for the performance of duties as a director, officer, or committee member

and may not in any other way benefit financially from service to the association.

To retain the management company is an obvious financial benefit for this Director so that if

she has the OPTION to recuse under RRO, I think it may be she MUST recuse herself under 720. Perhaps a member from Florida could respond.

[Edgar Guest]

Perhaps a member from Florida could respond.

 

This is not the proper forum for interpreting State statutes.

 

By the way, you won't find the term "recuse" in RONR. A member who chooses not to vote is simply abstaining.